A regulator wants to compare a lender's mortgage application data by geography and applicant demographics to spot possible discriminatory patterns. Which law requires the reporting of that data?
Correct Answer
B) Home Mortgage Disclosure Act (HMDA)
Home Mortgage Disclosure Act (HMDA) is correct because the facts match a federal law requiring certain lenders to collect and report mortgage application and origination data to help monitor lending patterns. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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